Sarah, a calendar year taxpayer, notifies you that during the year she incurs expenditures of $30,000 that qualify for incremental research activities credit. In addition, in it evaluated that her base amount of the year is $22,800.
a) Evaluate Sarah's incremental research activities for the year.
b) Sarah is in the 25 percent tax bracket. Evaluate which approach to the research expenditures and research activities credit (other than capitalization and subsequent amortization) would give the greater tax benefit to Sarah.